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Use Balance Transfers to Wipe Out $10,000 in Debt Rapidly
Getting out of debt without ruining your credit score can be a very expensive process. However, there is a tried and true method savvy credit card users have been taking advantage of for years that can save you thousands & sharply reduce the time it takes to get out of debt. Follow this pair of simple steps to start making a debt free life a reality.
Step 1: Stop Paying Interest on Your Credit Card Debt Immediately
This may sound like the hard part, but it is far from it. In fact, you can get this process started in 5 minutes. How? With a 0% intro APR balance transfer.
A 0% intro APR balance transfer is a promotion many credit card companies offer to new customers to gain their business. These 0% promotions generally last for 6 to 12 months, though some offers are 15 months or longer. If you apply and are approved for one of these offers, you can transfer your high interest credit card debt to the new card and pay 0% interest on it. It is that easy.
Just how much you save will vary based on your interest rate, but on a $10,000 balance with a 16% interest rate you would be spending $150 a month on interest. If you make a $250 payment, your balance would only decrease to $9,900 even though you’d be $250 poorer. That is a slow road to years and years of debt.
Step 2: Pay Off As Much of Your Debt As Possible During The 0% Period
Once you’ve transferred debt to your new 0% card, every payment you make will go directly to paying off your debt. While it may be tempting (or even necessary) to reduce your monthly payment, the goal should be paying down your debt consistently and increasing payments whenever possible.
Below you can see the huge difference doing a balance transfer will make on your credit card debt. For this example, we used the BankAmericard® Credit Card.
As you can see, consistently making $250 payments on a credit card with a regular interest rate doesn’t make much of a dent on your credit card balances. On the other hand, those $250 payments go a long way on a balance transfer card, wiping out more than 35% in just 15 months!
As you can see, opting to do a balance transfer is a no brainer decision that can literally save you thousands on interest. All you need to do is move your balance to one of the industry leading offers below to start saving.
Top 0% Intro APR Balance Transfer Offers:
BankAmericard® Credit Card
BankAmericard® Credit Card
- 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days, then 13.24% - 23.24% Variable APR
- $0 Intro Balance transfer fee during first 60 days of account opening. After that, the fee for future balance transfers is 3% (min. $10).
- No annual fee
- No penalty APR. Paying late won't automatically raise your interest rate (APR). Other account pricing and terms apply.
- Access your FICO® Score for free within Online Banking or your Mobile Banking app
|Regular APR||Annual Fee||Intro Purchase APR||Balance Transfer Intro APR||Balance Transfer Fee|
|13.24%-23.24% Variable APR on purchases and balance transfers||$0||0% Introductory APR on purchases for 15 billing cycles||0% Intro APR for 15 billing cycles for balance transfers made in the first 60 days||$0 intro fee for the first 60 days. After that, the fee is 3% (min. $10)|
|Regular APR 13.24%-23.24% Variable APR on purchases and balance transfers|
|Annual Fee $0|
|Intro Purchase APR 0% Introductory APR on purchases for 15 billing cycles|
|Balance Transfer Intro APR 0% Intro APR for 15 billing cycles for balance transfers made in the first 60 days|
|Balance Transfer Fee $0 Intro Balance transfer fee during first 60 days of account opening. After that, the fee for future balance transfers is 3% (min. $10).|
Editorial Note: This content is not provided by the credit card issuer. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the issuer.
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